It is highly recommended that you work with a professional property management company when you want to exploit the maximum earning potential of your investment property. If not for anything else, managing an investment property requires round-the-clock monitoring which you may not be very competent in especially if you are not into the real estate industry fully. That said, it is important that you choose the right property management company for your needs, lest you end up with a whole new problem on your plate. As is with choosing any other professional service provider, there are a couple of areas you need to emphasize on when it comes to property managers. Additionally, you should also look for the following pointers to make an informed decision.
You can always get started by looking for tangible links and referrals from professionals and other investors within the real estate industry in your locality. If you know a property owner that had a bad experience with a particular property manager, they will most likely not recommend them your way. Networking and interacting with other investors will undoubtedly help open up your eyes to lots of different service providers so you can know what to expect. How about you also consult other service providers that you have worked with before such as electricians, plumbers, and roofing contractors?
Armed with several contacts, you can then start your search for the right property management firm by doing a thorough comparison of their services. One thing you should know is that different property management companies will have different terms and conditions of service. The first important step, therefore is to conduct a thorough analysis of their terms and conditions of service that each provider has. One of the key areas to check would be the tenant lease agreement that a service provider presents for its tenants. Be sure you understand what the lease agreement stipulates in regards to security deposits handling, late rent payments as well as payment default penalties.
You also need to look at the cost of contracting their service before you commit to any particular property manager for your real estate investment. What is their payment structure and is it convenient for you or it’s something you may struggle with along the way? What are the terms and conditions when it comes to property maintenance and repair and what is the schedule and timetable like? Avoid a company that has no clearly structured repair and maintenance schedules, lest you end up being overcharged for these services.